The ruling in Cruz v. Cruz, 213 A.D.3d 805 (N.Y. App. Div. 2023) is an important reminder of the importance of clear and comprehensive drafting in divorce settlements, separation agreements and prenuptial and postnuptial agreements. Poorly drafted or ambiguous agreements can lead to lengthy post-divorce litigation, causing sky rocking legal fees and unnecessary financial and emotional strain on both parties. Thus, when it comes to drafting it is crucial to find a seasoned Family Lawyer in Manhattan.
A knowledgeable Family Lawyer in Manhattan will help the parties to cover all that is necessary, to avoid ambiguities, which would lead to complications in the resolution of a possible future divorce including but not limited to:
- Clearly Addressing All Assets and Liabilities
List all marital and separate assets, specify ownership and division methods, and address outstanding debts and liabilities. In Cruz v. Cruz, the court denied a partition claim because ownership was resolved in the divorce. Thus, it is to clearly establish the disposition of all shared assets in the settlement to avoid issues later on.
- Anticipate Future Disputes and Include Waivers
- Anticipate Future Disputes and Include Waivers
To prevent post-divorce litigation, agreements should include explicit waivers of future claims related to property, support, or financial matters. Consider adding:
- A mutual release clause stating that both parties waive any future claims on assets already addressed in the agreement.
- A partition waiver confirming that neither party can later seek division of real estate addressed in the settlement.
- A dispute resolution clause, requiring mediation or arbitration before litigation to resolve disagreements.
By including such provisions, attorneys can help clients avoid legal battles like Cruz v. Cruz, where a party attempted to pursue additional claims post-settlement.
- Clearly Define the Treatment of Jointly Owned Real Estate
Divorce settlements must carefully outline the disposition of real estate, especially when parties continue co-ownership post-divorce. Critical considerations include:
- Whether the property will be sold immediately or retained by one party with a buyout provision.
- A timeline and process for selling or refinancing the property, including how expenses like taxes and mortgage payments will be handled.
- A partition waiver (as seen in Cruz v. Cruz) to prevent later attempts at forced sale or division of the property.
If real estate matters are left vague, former spouses may later attempt partition actions, leading to unnecessary litigation.
- Use Precise Language in Support and Financial Obligations
Ambiguity in spousal and child support terms can lead to disputes over enforcement or modification. Settlement agreements should:
- Clearly specify payment amounts, duration, and conditions for termination.
- Include adjustment clauses for income changes or relocation.
- Define tax treatment of payments to avoid future conflicts.
A poorly drafted agreement could lead to breach of contract claims, as seen in Cruz v. Cruz, where the plaintiff attempted to assert a separate contractual claim post-divorce.
- Ensure the Agreement is Legally Enforceable and Comprehensive
To ensure enforceability and avoid later disputes, attorneys should:
- Ensure compliance with state-specific laws governing divorce settlements.
- Avoid vague or open-ended provisions that could lead to differing interpretations.
- Include a merger or survival clause to clarify whether the agreement is incorporated into the divorce judgment or remains an independent contract.
If an agreement merges with the divorce judgment, enforcement should be pursued through family court rather than separate contract litigation, as reaffirmed in Cruz v. Cruz.
Conclusion
The ruling in Cruz v. Cruz underscores the critical importance of careful drafting in divorce agreements to prevent future litigation. By clearly addressing all assets, waiving future claims, defining real estate dispositions, and ensuring enforceability, attorneys can help clients avoid costly and time-consuming post-divorce disputes. A well-drafted settlement agreement not only provides clarity but also protects both parties from unnecessary legal battles in the years following divorce.
Would you like me to provide sample clauses or additional insights on a specific aspect of divorce settlements?